'Buy' Bharat Electronics Shares Maintains Motilal Oswal On Rs 30,000-Crore Anant Shastra Deal; Sees 24% Upside

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Motilal Oswal Report

The Indian Army has issued a tender to Bharat Electronics Ltd. for the much-awaited Quick Reaction Surface-to-Air Missile project, which was developed by Defence Research and Development Organisation. The Defence Acquisition Council had cleared the procurement proposal for this project shortly after Operation Sindoor in May’25.

This project is worth nearly Rs 300 billion and would strengthen the Indian Army's air defense system. This mobile system can search, track and engage targets on the move, with a firing range of around 30km, complementing existing MRSAM and Akash systems.

BEL will be the lead integrator for this project. We also expect the award of missiles for QRSAM to flow through to Bharat Dynamics Ltd.

Our estimates already factor in the award of this project, and we expect the execution to commence primarily from FY27 onward.

Along with this order, we also expect Bharat Electronics to benefit from orders for next-generation corvettes, electronics warfare, follow-on orders for electronics for 97 Tejas Mk1A, loitering munition programs, and export opportunities.

We maintain our estimates and reiterate Buy on BEL with a target price of Rs 490, based on 45x Sep’27E earnings.

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